Reply To: Tax Credits


I think the point is that because the IR now admit to being well behind schedule, many tax credit claimants will be entitled to receive much more HB / CTB than they would have received if the new scheme had run smoothly. Good luck to them is my view. It is not the claimant’s fault and I would also point out that with the increased taxation due in April (NINO increases and the end of the child tax code reduction) wage packets are going to be rather light next month. But this should be balanced by higher levels of HB / CTB except … where the LA has wrongly used “notional” amounts. I cannot personally see how claimants are going to be “confused” except if they see they are getting less money in their hand than their work colleague who lives in a neighbouring local authority area. But that is just a personal opinion.

The official line is that no contingency rules have or will be applied. I suspect that politically this is not seen as a good idea, particularly at the moment.